Elliott mulls new higher offer for Currys after initial £700m bid rejected
In an update this morning, the owner of Waterstones, said: “Elliott confirms that it is considering a possible cash offer for Currys.”
Elliott Investment Management confirmed it is considering a possible cash offer for Currys after the electrical retailer rejected its initial £700m bid over the weekend.
In an update this morning, the owner of Waterstones, said: “Elliott confirms that it is considering a possible cash offer for Currys.”
”There can be no certainty that an offer will be made for Currys nor as to the terms on which any offer might be made,” it added.
Currys’ board also said there “can be no certainty” that an offer will be made for the electricals retailer after it rejected its initial £700m takeover bid from activist investor Elliott Investment Management.
The London-listed retailer said the surprise offer for the firm “significantly undervalued” the company and its future prospects.
Reports emerged over the weekend that Elliot, the hedge fund giant with $55bn of assets under management, was making an unsolicited swoop for the business which employs over 28,000 people.
This deal would have involved a cash offer for the entire firm at 62p per share, making the full offer for the firm total to about £700m.
Currys said this morning: “The board of Currys considered the proposal, together with its financial advisers, and concluded that it significantly undervalued the company and its future prospects. Accordingly, on 16 February 2024, the board of Currys unanimously rejected the proposal.”
“There can be no certainty that an offer will be made for Currys nor as to the terms on which any offer might be made.”
The New York-headquartered hedge fund, run by Paul Singer, has built a name for its hostile activist campaigns against companies such as GSK and SSE.
The hedge fund bought Waterstones in 2018 for an undisclosed amount and also has a stake in Foyles.
After absorbing the firm along with Dixons and Carphone Warehouse, Currys dropped the PC World from its name in 2021 and has 300 UK stores that employ over 15,000 people.
As well as the Currys stores here, the business trades under the Elkjøp brand in the Nordic region, and last year announced a deal to sell its Greek business for £175m.
Shares in Currys soared over 32 per cent this morning as the London market responded to the news.
Chinese e-commerce giant JD.com also said today it is in the “very preliminary stages” of exploring a takeover of Currys.
